PICTURE-PERFECT PLASMA:
New TVs Turn Living Rooms into Movie Theaters
March 19, 2003

The rising popularity of plasma TVs is the latest manifestation of the digital age in Japan. Although they cost more than twice as much as traditional cathode-ray models, consumers are attracted to plasma TVs by their slimness and the clarity and detail of their picture. Plasma TVs sold four times as fast in 2002 as in 2001, and manufacturers expect this strong upward trend to continue. A hi-tech revolution is transforming the quality of viewers' audiovisual experiences.

Slim, Light, and Clear
Plasma display panels are made of two glass plates coated with red, blue, and green phosphor, with a special gas filling the gap between them. Applying an electric current causes a plasma discharge, making the phosphor light up. The attraction of these TVs can be summed up in three words: slim, light, and clear. PDPs are only about 10 centimeters thick and, because they do not involve the use of a cathode-ray tube, do not stick out at the back; even large screens do not take up much space. Another major advantage is that the screens are flat and therefore do not distort images like CRT screens do.

The hottest-selling plasma TVs have screen sizes of 42 inches, whereas 36 inches is a standard size for cathode-ray TVs. A 42-inch PDP with a built-in tuner for receiving satellite channels costs around ¥700,000 ($5,833 at ¥120 to the dollar), more than twice as much as a 36-inch CRT model with the same functions, which costs around ¥300,000 ($2,500). Despite the high cost, according to the Japan Electronics and Information Technology Industries Association, 131,000 plasma TVs were shipped between January and October 2002, 3.6 times as many as in the same period in 2001 and in stark contrast to the 13.3% fall in shipments of CRT TVs.

Next-Generation TVs

The biggest factor behind the rapid rise in sales has been a fall in prices. According to industry sources, the actual price of plasma TVs has fallen 10% to 20% in the last year, taking prices closer to the key ¥10,000-per-inch level that is believed to bring TVs within reach of ordinary households. The greater variety of audiovisual content available thanks to the spread of digital broadcasting and DVD players in recent years has also made PDPs attractive, and more and more people are keen to enjoy their favorite movies and TV shows on big screens.

Many electronics makers regard PDPs as the future of TV and are spending huge sums on developing them. The Osaka-based firm Matsushita PDP Co., a joint venture by Matsushita Electric Industrial Co. and Toray Industries, has invested ¥60 billion ($500 million) building a new factory, enabling it to triple its production capacity to 65,000 screens a month. Other manufacturers are also planning to raise their production to two or three times their current levels.

Until recently liquid crystal display TVs were being trumpeted as challengers to plasma TVs for supremacy in the emerging market for slim screens. LCD TVs have many virtues. They are almost as slim as PDPs, consume a third less electricity than CRT TVs and half as much as PDPs, and last over 20 years - about three times as long as either PDP or CRT models.

Their biggest drawback, however, is the technological difficulty of making large screens. Among Japanese manufacturers Sharp Co. has made the largest LCD TV so far, a 37-inch model that went on sale in autumn 2002. With a market price of ¥700,000 ($5,833), it is about ¥100,000 ($833) more expensive than a PDP model of the same size. At the 20-inch level, by contrast, LCD TVs are about ¥150,000 cheaper than their PDP counterparts. Most observers therefore see LCDs as more suitable for use in standard-size and smaller TVs.

A New Market for Home Cinema
Meanwhile, home theater speaker systems designed for use with a PDP or other large screen are also selling well. These systems play the multichannel surround sound recorded on DVDs through five small speakers and one slightly larger subwoofer (bass speaker), enabling users to enjoy cinema-standard sound effects.

Until now it has been hard for consumers without specialized knowledge to assemble their own home theater system and to install the systems in their homes. But with the emergence of complete speaker systems that can be used straight out of the box, along with the spread of DVDs, the market for these systems has expanded rapidly. The popularly priced systems generally sell for around ¥30,000 to ¥60,000 ($250 to $500), and, according to industry sources, 200,000 units were shipped in 2002, about 2.5 times as many as in 2001. Manufacturers are confident of a further 50% jump to 300,000 units in 2003. New markets in home entertainment are opening up as screen and sound technology advances.


Copyright (c) 2003 Japan Information Network. Edited by Japan Echo Inc. based on domestic Japanese news sources. Articles presented here are offered for reference purposes and do not necessarily represent the policy or views of the Japanese Government.
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